Disclosure to landlord of current living situation

ckj

We are currently in a mortgaged property in negative equity and also in an IVA. Circumstances have resulted in us needing to fail the IVA, possibly go bankrupt and leave our current property. As we are choosing to hand the keys back to the mortgage company, we are not selling the house. We are trying to get rented accommodation and have explained about the IVA situation to the estate agent. On the forms for the potential property we hope to get, it asks current living situation - renting, living with family or a homeowner. Do you select home owner? What do we confirm if questioned about the home? Have you sold it etc?? We feel that saying we are just handing the house back with cause a problem and we will not be considered for the rental. What can we tell them??

Any advice would be greatly appreciated.

PippaGirl_2

Yes select home owner as you are on the deeds atm, I would just say the plans for the house is that it will be sold in due course.

Lou67

ckj wrote: »

We are currently in a mortgaged property in negative equity and also in an IVA. Circumstances have resulted in us needing to fail the IVA, possibly go bankrupt and leave our current property. As we are choosing to hand the keys back to the mortgage company, we are not selling the house. We are trying to get rented accommodation and have explained about the IVA situation to the estate agent. On the forms for the potential property we hope to get, it asks current living situation - renting, living with family or a homeowner. Do you select home owner? What do we confirm if questioned about the home? Have you sold it etc?? We feel that saying we are just handing the house back with cause a problem and we will not be considered for the rental. What can we tell them??

Any advice would be greatly appreciated.

It's very important that you disclose the information that you are thinking of going bankrupt to a prospective property agent or landlord, and tell them that this is the reason that you are looking for private let. I speak from experience. We went bankrupt in November 2010, and sought out privately rented accommodation around August. It is essential of course, to find other accomodation before bankruptcy, so you are not left homeless, and you are much more likely to pass a credit check.

We struggled for a few weeks to get a property agent that would take us on, when we told them we were going bankrupt, as some people are very judgemental and snobby, and think bankrupts are scum, but eventually we found 3 of them who said they *would* help us out .

Just calling yourself 'homeowners' and saying you will 'sell the house eventually' is bad advice, as when you DO go bankrupt, (which will more than likely be soon after you move into the private let from what I gather from your post,) the Official Receiver will inform your Property agent and landlord. It won't be long before they realise you lied to them, and intended to go bankrupt all along. The property agent will not be happy and it is possible that the landlord will not renew the tenancy, as you will have deemed yourself untrustworthy and sneaky.

Then you will struggle to find another property with your bad credit record and a landlord who will probably refuse to give a reference (or may give a bad one.) I know someone who works for the CAB, and they said they have seen this happen a lot, and you are MUCH better off being up front from the onset

As I said, I am speaking from experience. Be honest from the start. We were, and 2.5 years later, we have a fantastic relationship with our property agent - who say we are one of their best tenants, and a great raport with our landlady. The Official Receiver DID contact them about our bankruptcy, and I wasn't at all worried about it, as I knew I had not held important information back, and lied about anything.

If you are going to start afresh with no debt; don't start your new life with a lie hanging over you. The chances are high that the landlord and property agent will find out that you intended to go bankrupt all along, and deliberately witheld it from them.

PippaGirl_2

In response to Lou's post, which I accept is a totally different opinion and we all entitled to those. I would NEVER ever tell anyone to lie, and did not do so.

luvchocolate

I too was in a similar situation, I put house owner as at that time I was, and have been in the same rented property for a number of years now.
My landlord/letting agent was not informed of my br as I had no debt there.
Always tell the truth as it is at the time......who knows what will happen in the future.
You will always get different opinions and will have to make the final decision yourself.
Good luck you will get there!! x

G_M

Eviction via S8 Ground 17:


Housing Act 1988 Schedule 2 (17 S8 Grounds a LL can use)

[F33The tenant is the person, or one of the persons, to whom the tenancy was granted and the landlord was induced to grant the tenancy by a false statement made knowingly or recklessly by—
(a) the tenant, or
(b) a person acting at the tenant’s instigation.]

DCFC79

G_M wrote: »

Eviction via S8 Ground 17:


Housing Act 1988 Schedule 2 (17 S8 Grounds a LL can use)

Old thread to reply to G_M, was there a reply you responded to that's now been removed ?

G_M

Ooops!


I was looking at ckj's posting history (because of his/her current post) and instinctively replied without thinking!